World's largest producer of roses, Karuturi Global, has informed that the company is raising $100 million by selling a 15% stake in its Dubai-based subsidiary.

According to sources, the company will sell the stake in Karuturi Overseas to a private equity (PE) player valuing the Dubai-based subsidiary at over $650 million after the acquisition.

The Dubai-based unit is the holding company for all the African business of Karuturi Global and added about 90% of its revenues and net profit. The firm is presently valued at less than US$ 250 million.

The company informed that the term sheet for the transaction has already been signed and the formalities would be finished by early November.

The Bangalore-based company became the world’s largest grower of roses after acquiring Ethiopia’s Sher Agencies for $68 million last fiscal. The acquisition took its yearly production from 150 million stems to 685 million stems.

The African business of Karuturi Overseas includes all the floriculture business in Kenya and Ethiopia and along with this it also includes its foray into agriculture products in Ethiopia. The products include palm oil, sugarcane, fresh-cut vegetables and cereal crops.

The company plans to increase cultivation to 1,20,000 hectares in the next five years, which is three times the size of Mumbai having 44,000 hectares of land.

Karuturi Global has appointed Yes Bank as advisor for the latest deal.